Investment bank Citi has upgraded its rating on Coinbase shares from “neutral” to “buy,” citing a shifting political landscape and a recent Supreme Court decision as key bullish catalysts for the stock.
Points
- Citi upgrades Coinbase shares from “neutral” to “buy.”
- Shifting political landscape and recent Supreme Court decision are key factors.
- Target share price increased from $260 to $345.
- Overturning of the Chevron Defense Doctrine seen as a positive development.
Investment bank Citi has increased its share price target for Coinbase, upgrading its rating from “neutral” to “buy.” This decision is driven by a shifting political landscape and a recent Supreme Court ruling that are viewed as positive catalysts for the cryptocurrency exchange’s stock.
In a July 23 investor note, Citi analysts Peter Christiansen, David Wieloszynski, and Nicolette Radomski highlighted several bullish factors contributing to the upgrade. They raised the target share price for Coinbase （COIN） from $260 to $345, reflecting increased confidence in the company’s future performance.
One of the key factors is the potential for a more crypto-friendly administration in the US. Additionally, the analysts noted the recent Supreme Court decision to overturn the Chevron Defense Doctrine, which has significant implications for regulatory interpretation and enforcement.
“We are not legal experts, though the decision does cast doubt on whether the SEC’s interpretation of the Howey test, a key basis employed to test whether an asset is to be deemed an investment contract, remains an infallible construct in their prosecution,” wrote the analysts.
This ruling is seen as increasing the “risk/reward setup” for owning Coinbase shares. Alongside the broader market exposure, the analysts believe Coinbase could benefit from a potential catch-up of US crypto regulations with relatively higher on-chain activity and liquidity developed abroad.
解説
- Political Landscape: The potential for a more crypto-friendly administration in the US and recent judicial decisions are viewed as favorable developments for Coinbase, enhancing its market prospects.
- Supreme Court Ruling: The overturning of the Chevron Defense Doctrine introduces uncertainty about the SEC’s regulatory approach, potentially benefiting Coinbase in legal interpretations.
- Market Potential: The increased target share price reflects growing confidence in Coinbase’s ability to capitalize on regulatory shifts and market opportunities, bolstering its position as a leading cryptocurrency exchange.
- Investment Outlook: Citi’s upgrade underscores the dynamic nature of the crypto market and the importance of staying attuned to regulatory and political developments that can impact stock performance.